Whiston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Whiston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Whiston you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Whiston with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you increased control over the value of your Whiston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold owner of a high value apartment in Whiston on the market with a lease of a few days over 61 years left. Henry on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr Evan Mitchell took over the lease of a purpose-built flat in Whiston in October 2002. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Whiston with 100 year plus lease were valued around £173,800. The average amount of ground rent was £60 collected quarterly. The lease came to a finish in 2081. Having 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.
Last month we were approach by Dr Sam Morgan , who owned a one bedroom flat in Whiston in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Whiston with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 collected monthly. The lease expired on 21 February 2092. Considering the 66 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.